In a Court-ordered agreement to eliminate disposal of sludge from its treatment plants into the ocean, the City of Los Angeles was required to evaluate alternatives for transporting and disposing of sludge on land. Based on a thorough environmental analysis, alternatives found to have the least environmental impacts were chemical stabilization and composting. Land application would also be effective, but would cause greater impacts. Landfilling is a current option, but soon, lack of capacity will limit its use. Future population increases and proposed regulations may add to the costs and limit the viability of some of these alternatives. This paper discusses these findings and summarizes the recommended sludge disposal program.